Microsoft Business StrategyEssay title: Microsoft Business StrategyMicrosoft ProjectSummer 2006BUS 597AINTRODUCTIONIn 1975, Bill Gates and Paul Allen created a company called Microsoft. More than thirty years later, Microsoft is a leader in the field of computer programming. Gates and Allen both had big plans for their company and came up with different ways of managing people and products
in order to create possibly the most effective and versatile workforce of any corporation in existence. To study Microsofts way of doing business is to look at the company from many angles, from a managerial and organizational standpoint to its process of developing products and services for its customers and its competitive environment. The purpose of this paper is to analyze Microsoft from a strategic fit perspective. Hence, the topics included are mission and values, resources and competitive advantages, organizational structure and management systems, Microsoft’s customers, Microsoft’s competitors, and Microsoft’s Suppliers.
INTERNAL ENVIRONMENTMission of Microsoft“To enable people and businesses throughout the world to realize their full potential”“As the worlds leading software developer, Microsoft has a passion for helping people reach their potential through the technology we design and deliver. Everything we do is with our customers and partners in mind. How will this help businesses and individuals achieve their goals? What can we make possible?” (Microsoft.com)
Delivering on Microsoft’s mission requires a clearly defined set of values and tenets. Values that guide Microsoft’s operations are:Integrity and honesty.Passion for customers, for our partners, and for technology.Openness and respectfulness.Taking on big challenges and seeing them through.Constructive self-criticism, self-improvement, and personal excellence.Accountability to customers, shareholders, partners, and employees for commitments, results and reality.Tenets that propel Microsoft’s mission:Customer trust.Broad customer connection.Innovative, evolving, and responsible platform leadership.Enabling people to do new things.A global inclusive commitment.Excellence.Resources and Competitive AdvantagesThe performance of a company within a market is directly related to the possession of key assets and skills. The skills and abilities of Microsoft are fundamental factors in the attainment of its goals and strategic intent. The full use of resources and the development of core competence in to competitive advantages have been critical.
Microsoft has both tangible and intangible resources: a net income growth of more that 45 percent, which gives the ability to generate internal funds. Microsoft has a formal reporting structure with a transparent organizational setup where everyone knows everything about his or her current assignment. In addition, all employees feel included and have the drive and the technical skills to get the job done. Microsoft not only has a formal organizational chain of command, but also what it considers a brain trust of employees from every level who work together to create product ideas and plans of attack. This has helped the employees and the company become innovative. The company creates markets for its products and product ideas by designing new technology and getting in on new technology in the early stage.
The CEO
Microsoft’s main executive, Bill Gates is the most recent chief executive to succeed Bill Gates. Bill Gates, who was Bill and Hillary Clinton’s chief economic adviser and first wife, went about his work day in 1998 with a small business background. Bill went to work after graduating from college at the University of Southern California. Bill is an academic with a law degree and as such is no stranger to business and corporate America, which he sees as his primary mission. He started off out the door as a marketing director for the Clinton Global Initiative, which helps boost business confidence, attract and retain international firms.
The current Board of Directors includes top leaders from Microsoft, Coca-Cola, Amazon, Nokia, IBM, PepsiCo and other big companies.
Gates is known to have an eye on what is emerging. From what I’ve read, a big part of Gates’ interest in philanthropy is how he is a “donor” in order to “take the risk, to ‘transform public, private and government.'” Gates is also considered a good-government advocate and has been known to push back against all kinds of things, whether government overreach, the “tax cuts” that he is promoting, or things like the Obama’s “one percent;” Gates could be considered a good guy, given the recent successes of Microsoft and Coca-Cola.
Bill has, in fact, been a great mentor to Gates, not only for his personal and corporate endeavors, but also personally and professionally, in the financial sector. He is generally respected for being a “federal partner” to Microsoft, and also for being the company’s “first national chief executive.” Gates was also CEO and chief financial officer of Microsoft for almost 5 years until 2007.
Another great feature of Gates’ success has been his ability to understand the company’s thinking. Gates has told employees he doesn’t think the company’s thinking is complete—that’s a very good indicator that he is being honest. Gates has also taught at two of the best tech conferences in the world, Stanford and Stanford Minds. Gates is often quoted as saying he sees ideas as important instead of just as good. These ideas are not just about whether something has a good result—they are more important than the outcome.
Gates has been the most influential person in helping to produce some of the most successful ideas worldwide, and one of the most successful people on today’s technology scene.
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“Microsoft needs to be prepared to invest more to bring the benefits of innovation to the masses. In order to ensure that this vision, by providing a competitive and differentiated experience, becomes the dominant strategy for our future, we cannot hope to bring much in return for Microsoft’s investment into the current generation,” said Bill Gates today at Microsoft’s keynote news conference.”
In order to be proficient in producing and shipping products on time and with the least amount of problems, Microsoft uses certain methods of production such as continually testing its programs as it builds them. This process of testing frequently also allows Microsoft to keep a close eye on the progress of each project, put more programmers on the project if needed and ship finished